WHAT IS ETHEREUM LAYER-2?
Ethereum layer-2 are solutions built on the Ethereum platform to solve the problem of transaction throughput and transaction costs. More specifically, these Layer-2 layers add another sub-layer to Ethereum to enhance performance and reduce transaction costs. In other words. Layer-2 was created to increase the scalability of Layer-1. At the same time, it also inherits some important features of Layer-1 such as security and decentralization.
IMPORTANCE OF ETHEREUM LAYER-2
Ethereum Layer-2 plays an important role in solving the main challenges of the Ethereum network, including high transaction throughput and expensive transaction costs. Here are some important roles of Ethereum Layer-2:
1. Enhanced performance
- Layer-2 enhances the performance of the Ethereum network by reducing the burden of transaction traffic on the main chain. This helps improve transaction confirmation speed and minimize delays in the system.
2. Reduce transaction costs
One of Ethereum’s biggest problems is expensive transaction costs, especially during periods of traffic growth. Layer-2 provides a solution to reduce this cost, making the use of Ethereum more efficient and cost-effective.
3. Increase scalability
Ethereum Layer-2 expands the scalability of the network by allowing the processing of a large number of transactions off the main chain. This helps the core network focus on more important transactions, while still maintaining the security and decentralization of Ethereum.
4. Interactive ability
Layer-2 not only improves performance and reduces costs, but also opens up opportunities for applications to interact with each other more seamlessly. This creates a rich blockchain of applications and services that can operate on the Ethereum platform.
In summary, Ethereum Layer-2 plays an important role in ensuring the sustainable development of the Ethereum blockchain by solving the problems of transaction throughput and transaction costs.
TYPES OF LAYERS-2
Ethereum Layer-2 is divided into 5 solutions:
- Optimistic Rollups
- Sidechains
- Zero-Knowledge Rollups
- Channels
- Validiums
Each type of Layer-2 has its own advantages and limitations, and the choice between them often depends on the specific requirements of the application and project.
TOP 5 PROJECTS ON ETHEREUM LAYER-2
1. Polygon
Polygon (formerly known as Matic Network) is one of the most popular Layer-2 projects built on the Ethereum platform. Polygon provides a scaling solution for Ethereum using a high-performance sidechain with full compatibility with the Ethereum blockchain. Here are some key points about Polygon:
- Expanding scalability: Polygon provides an Ethereum-based development and operations environment that reduces costs and increases transaction speed by moving transactions from the Ethereum mainchain to Polygon sidechains.
- Full compatibility: Applications and smart contracts can run on Polygon without changing existing source code. This helps dApps to easily deploy and run on the Polygon network without having to change much in structure or codebase.
- Scalability: Polygon allows processing thousands of transactions per second, helping to improve the scalability of the Ethereum network. This reduces pressure on the main chain and reduces transaction costs for users.
- Diversity of Layer-2 layers: Polygon is not limited to a specific Layer-2 type, but often uses a combination of Layer-2 methods such as zk-Rollups, Optimistic Rollups and sidechains to create a diverse and high-performance network system.
Polygon has become one of the most popular options for project developers on Ethereum with the goal of increasing scalability and reducing transaction costs.
2. Arbitrum
Arbitrum is one of the important Layer-2 projects on the Ethereum platform, developed by Offchain Labs. Here are some important points about Arbitrum:
- Optimistic Rollups: Arbitrum uses Optimistic Rollups technology to batch compress transactions and proofread them tracelessly before posting to the Ethereum mainchain. This reduces the load on the main thread and increases processing speed.
- Enhanced performance: Thanks to Optimistic Rollups, Arbitrum is capable of processing thousands of transactions per second, significantly improving Ethereum’s scalability and reducing transaction costs.
- Decentralization and security: Optimistic Rollups technology provides high security by protecting the privacy of transaction data and other information. At the same time, Arbitrum retains Ethereum’s decentralization without sacrificing it.
- Wide range of application support: Arbitrum is not limited to supporting a specific type of application. Instead, it provides a powerful development environment for developers to build and deploy DeFi applications, NFTs, games, and more on the Ethereum platform.
- Supports easy integration: Arbitrum is designed to integrate easily with existing applications and protocols on Ethereum. This helps facilitate the transition for projects and users to use Layer-2.
In short, Arbitrum plays an important role in enhancing the performance and scalability of the Ethereum network, providing a flexible and efficient Layer-2 solution for the Ethereum community.
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3. Optimism
Optimism is one of the most important Layer-2 projects on the Ethereum platform, aiming to solve the problems of transaction traffic and high costs of the main network. Here are some notable points about Optimism:
- Optimistic Rollups: Optimism uses Optimistic Rollups technology to batch compress transactions and proofread them tracelessly before posting to the Ethereum mainchain. This reduces the load on the main thread and increases processing speed.
- Enhanced performance: Thanks to Optimistic Rollups, Optimism is capable of processing thousands of transactions per second, significantly improving Ethereum’s scalability and reducing transaction costs.
- Decentralization and security: Optimistic Rollups technology provides high security by protecting the privacy of transaction data and other information. At the same time, Optimism preserves Ethereum’s decentralization without sacrificing it.
- Wide range of application support: Optimism is not limited to supporting only one specific type of application. Instead, it provides a powerful development environment for developers to build and deploy DeFi applications, NFTs, games, and more on the Ethereum platform.
- Supports easy integration: Optimism is designed to integrate easily with existing applications and protocols on Ethereum. This helps facilitate the transition for projects and users to use Layer-2.
In short, Optimism plays an important role in enhancing the performance and scalability of the Ethereum network, providing an efficient and flexible Layer-2 solution for the Ethereum community.
4. Starknet
StarkNet is a Layer-2 project being developed on the Ethereum platform by StarkWare. This project aims to improve the scalability and performance of Ethereum by using zero-knowledge (ZK) technology to batch process transactions off the main chain. Here are some key points from StarkNet:
- ZK-Rollups: StarkNet uses ZK-Rollups technology to batch compress transactions into a traceless proof, which is then sent to the Ethereum mainchain for confirmation. This reduces the load on the main thread and increases processing speed.
- High performance: Thanks to the use of ZK-Rollups technology, StarkNet can process thousands of transactions per second, significantly improving Ethereum’s scalability and reducing transaction costs.
- Supports a wide range of applications: StarkNet is not limited to supporting specific types of applications. Instead, it provides a powerful development environment for developers to build and deploy DeFi applications, NFTs, games, and more on the Ethereum platform.
- Security: ZK-Rollups technology helps protect data privacy and security during the process of transferring transactions from the child chain to the Ethereum main chain.
In summary, StarkNet is a potential Layer-2 project that brings many benefits to the Ethereum network, including scalability, high performance, and security.
5. Immutable X
Immutable X is a Layer-2 project built on the Ethereum platform, aiming to solve the problems of transaction traffic and high costs of the main network. Here are some key points of Immutable X:
- ZK-Rollups: Immutable This reduces the load on the main thread and increases processing speed.
- Enhanced performance: Thanks to ZK-Rollups, Immutable X is capable of processing thousands of transactions per second, significantly improving Ethereum’s scalability and reducing transaction costs.
- Decentralization and security: ZK-Rollups technology provides high security by protecting the privacy of transaction data and other information. At the same time, Immutable X retains the decentralization of Ethereum without sacrificing it.
- Wide range of application support: Immutable X is not limited to supporting only one specific type of application. Instead, it provides a powerful development environment for developers to build and deploy DeFi applications, NFTs, games, and more on the Ethereum platform.
- Free gas transactions for users: One of the special features of Immutable X is the provision of free gas transactions for users, helping to reduce barriers for users when participating in activities on the network.
In short, Immutable X is an important Layer-2 project in the Ethereum blockchain, bringing many benefits such as enhanced performance, security, and diverse support for applications on the Ethereum platform.
CONCLUSION
Top 5 outstanding projects on Ethereum Layer-2 have achieved significant achievements in improving Ethereum’s scalability. Recent fluctuations in the electronics market have further highlighted the importance and potential of Layer-2 extension protocols.
Several projects such as Polygon, Optimism and Arbitrum are leading the way and demonstrating the power of Layer-2 scaling technology.